Hi BP,I have a retired neighbor in an in-town historic Atlanta neighborhood that's paid off his house and now he's looking to finance building an Accessory Dwelling Unit (ADU) that he can rent out for supplemental income. 

Hey Rusty- Accessory Dwelling Unit (ADU) and Mother-In-Law (MIL).

The city of Grand Junction and our county have generous rules regarding "ADUs" (accessory dwelling unit).

Have you ever looked into adding a garage apt / accessory dwelling unit where a historic garage once stood?  

I believe the neighbor is complaining since a quest car might be on the edge of his drive way.The article violations are:-No part of any line shall be used for the purpose of than single-family dwelling in duplex Villas and uses accessories there to.

I will keep you informed and up to date as I receive more information.In the meantime please feel free to contact me anytime for additional information about how to proceed with the purchase and installation of an Accessory Dwelling Unit (ADU).STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY EDMUND G.

There may be MI but you have the ability to customize it and possibly not pay as many as with 203k- you do not need equity at the time of initiating or applying for a refinancing (assumes you own the property already) vs a FHA 203k you need min 2.25% equity - flexibility of primary/investment/second homes and rehab financing vs only primary with FHA- less restrictions on what type of upgrades you do like luxury items are less restricted and attached ADU (accessory dwelling units) are ok since some people like to build in law quarters and such while 203k will have severe restrictions on theseSome downsides on home style are:- your rehab cannot exceed 50% of your ARV value (determined by your appraisal). - can only have 4 financed properties (may be an over lay but I've always seen this)- min down is 5% vs 3.5% with FHA- FHA 203k is not capped for rehab budget like home style with its 50% of ARV cap

@Joseph WalzActually, this should be what I focus on- https://minneapolis2040.com/media/1427/pdf_minneapolis2040_12_7_2018.pdfMinneapolis final 2040 comp plan- page 165Allow Accessory Dwelling Units (ADUs) on both owner occupied and non-owner occupied property, develop a set of ADU templates that meet City codes to ease ADU construction and allow the use of tiny homes and other alternative housing as ADUs .

If you plan to live in the home during the rental and rent a room or space to guests, you can apply for a Accessory Home Share permit. 

I am being urged to get my real estate license because the business management and finance background I have are highly coveted by the people I am meeting and partnering in projects is likely much more lucrative that hiring out my CPA skills.So the solution I've come up with for myself is to do a little of #2 and a lot of #3.